AS INDIA LOOKS to end public sector control of nuclear power generation, Tata Group is likely to be among the first private sector players to enter the business. Group chairman N. Chandrasekaran said at the recent Tata Power annual general meeting that the company is exploring participation in “small modular nuclear reactors (SMNRs) once the government gives necessary permissions.”
Centre plans to invite companies to invest about $26 billion in the sector to reduce carbon emissions. The country had just about eight gigawatt (GW) nuclear capacity in March 2024. Thermal was 243 GW and renewable 144 GW. Hydro capacity has been stagnant at 47 GW for years now.
The efforts are part of a global trend towards greater acceptance of nuclear energy to meet emission goals. Nuclear energy was shunned the worldover due to safety concerns after the Fukushima nuclear plant explosion in 2011.
For example, Sweden recently repealed anti-nuclear laws and allocated funds for its nuclear power strategy. It amended energy targets to achieve a fossil fuel-free status by 2045. During the COP28 climate summit in December 2023, over 20 countries accepted a declaration to triple nuclear energy capacity by 2050. Until December, around 59 reactors of 61 GW were under construction worldwide. "As large reactors face constraints and safety concerns, there has been a shift towards SMNRs. Governments are increasingly supporting SMNR development, unveiling new funding plans," Tata Power says in its latest annual report. Canada has allocated $29.6 million to foster SMNR supply chains. U.S., Japan, South Korea and UAE have pledged up to $275 million for an SMNR project in Romania, and U.S. has earmarked $72 million for its international SMNR initiative.
Despite challenges in building SMNRs, China, Russia and U.S. are leading the segment. China, in particular, stands out with 36 nuclear reactors (both large and SMNR) either under construction or approved. It plans to approve 6-10 new reactors every year until 2030, reflecting significant commitment to expansion of nuclear energy.
In India, action is much slower. Nuclear Power Corporation of India Ltd. (NPCIL) recently commissioned two units of 700 MW each at Kakrapar nuclear power station in Gujarat after a gap of six years. Another 700 MW unit is expected to be commissioned in Rawatbhata, Rajasthan, this year. NPCIL chairman and managing director B.C. Pathak recently said the PSU plans to commission a nuclear power reactor every year. NPCIL owns and operates all of India's nuclear power plants with a capacity of 7,500 MW; 1,300 MW is under construction. At present, the law bars private firms from building nuclear power plants in the country. However, they can supply equipment and components and participate in civil construction outside the reactors.
Tata Power targets 15 GW clean energy portfolio in five years, up from existing 9 GW. It has set up a 4.3 GW solar cell and module manufacturing plant in Tamil Nadu. Its other new investments are in EV charging stations and rooftop solar. “Tata Power plans ₹20,000 crore capex in FY25. This is over and above the ₹12,000 crore invested in FY24. A large part of this will be towards accelerating the company’s renewable energy portfolio and the balance towards transmission and distribution businesses," says Chandrasekaran.